What is Tax?
It is a mandatory fee imposed upon a person or corporation by the central or state govt to help build the economy of a country by meeting various public expenses.
Type of Tax
There are broadly divided two types of taxes which are imposed upon person or corporation by the government of India-
- Direct tax
- Indirect Tax
This Tax is levied directly on a taxpayer who pays it to govt and cannot pass it on to someone else.
Some of Direct taxes imposed in India are:-
- Income Tax
- Capital gain tax
- Wealth tax
Indirect Tax This tax is levied by the government on goods and services, not on the income, profit, or revenue of an individual, and it can be shifted from one taxpayer to another.that means it is tax paid more than the actual price of a product or services.
|Central Government||State Government|
|Excise duty on Manufacturing||VAT On sale with state|
|Service Tax on services||Entertainment Tax On entertainment|
|GST — Inter state sale||Luxury Tax on luxury Hotels Room|
|Custom Duty – on import||Octroi/Entry Tax on the transfer|